ICS will turn its laboratory research into products and services by working with commercial partners to lead in developing one of the world’s key enabling technologies – Compound Semiconductors (CS).

Finance Secretary Mark Drakeford said: “Investing in world leading facilities so that academia and industry can collaborate and drive forward research in this sector will be an important boost to the Welsh economy..."

“This EU funding will encourage high quality well-paid employment in the participating companies and the creation of spin-out companies, new start-ups as well as attracting innovative CS companies from across the UK and Europe, all adding to increased growth and prosperity in the region.”

Mark Drakeford AM, Finance Secretary

Compound Semiconductor technologies underpin the internet and have enabled new emerging megatrends such as Smart Phones, tablets, and satellite communications. CS are created by combining elements to produce materials with physical and chemical properties that have wide-ranging technological applications.

"By investing in high quality facilities and talented researchers, and by building long-standing commercial partnerships, Cardiff University’s Innovation System will help deliver prosperity for Wales.”

Professor Colin Riordan, President and Vice-Chancellor, Cardiff University

Dr Drew Nelson, CEO, IQE plc, said: "The role of compound semiconductors as an enabling technology for a wide range of next generation applications from high-speed communications to autonomous vehicles, is widely acknowledged worldwide, with major initiatives underway by blue-chip organisations, academic institutions and government agencies, particularly in Asia and the USA..."

"In Europe, Wales is uniquely positioned with a critical mass of compound semiconductor expertise to exploit the enormous commercial opportunities that will doubtlessly be generated."

Dr Drew Nelson, CEO, IQE plc.

"Today's announcement of £13M investment by WEFO significantly adds weight and credibility to Wales becoming a global hub in this key enabling technology that will drive innovation over the coming years and decades."

The funding builds on long-running work between the University, IQE, Welsh and UK Government to develop a hub of CS expertise in South Wales, and includes awards of £17.3m from the UK Research Partnership Investment Fund and £12m from Welsh Government to support the development of the wider ICS facility.